Setting up a Corporation (INC) for your business is so easy and quick; you shouldn’t really let this be a barrier to getting things started.
Interested in how you can start and setup a Corporation (INC) on-line in less than 6 minutes?
Check out the video below where I guide you through the entire process of filling out the required information to form an INC at LegalZoom.com!
If You Missed the First Part in This Series
If you are interested in finding out more of what a Corporation is in comparison to other types of business structures or why it is a great structure if you are looking to start your own small business and build it into something great, check out part-one in the series here. I prefer an LLC for my business because it makes the taxes easier, but if you have grandiose plans for one day selling your business or getting many investors, then a corporation (INC) may be your best bet.
A Couple of Points on How to Start and Setup an INC (Corporation) on-line with LegalZoom.com
As you watch the video, you will see the following choices for how to setup your INC mentioned, I wanted to put a little more detail here for those that are interested in the specifics. Note that LegalZoom will try to up-sell you a lot of extra stuff that you probably don’t need:
- Would you like us to help you obtain S-Corporation status? ($80) – No, no, no!!! You can do this yourself through you state’s Corporation Commission website and you can do this at any time. It takes all of 2 minutes.
- Would you like us to help your INC apply for a federal tax identification number? ($79) – No, no, no!!! This takes all of 30 seconds through the IRS website, no need to spend eighty dollars on it. Here is the IRS link to get your own federal tax ID.
- Registered Agent? ($159/year) – You can be your own registered agent and have everything sent to your LLC’s main address if you are located in the state you are incorporating in. So, pick “I will name the registered agent”. The only real reason for this is if you are running a business out of your home and you would like to keep your address semi-private. Other examples I’ve seen used is if the Sheriff needs to serve you papers, you don’t want them coming to your business and upsetting customers. It is a waste of money for my type of business, but you can decide for yourself. You can also find dozens of registered agent services in your state of filling to handle things for you. I have one that charges $40 a year. If you still have a concern, another idea is to setup a UPS box and have everything sent there.
- How Many Shares of Common Stock? – Try 1,000 or click help for more info.
- Par Value? – Leave this set for something simple like $0.01
- Maintain Corporate Minutes? ($69/year) – NO! You can do this yourself in about 10 minutes
- Choose a Compliance Package? ($259/year) – You can do this all yourself. You need to file monthly state taxes, quarterly federal taxes, and an annual tax return. That’s it! The state corporation commission has a website that details all of this for your for free!
- Business Advantage ($96/year) – Not sure who would buy this; please decline it. You don’t need it! A quick google search will provide you with a NDA, Invoice, General Agreement, or any other template for free.
- Choose Your Package ($350) – Please, please, please just pick Economy. The other packages give you a lot of extra stuff that will be of limited use to you!
There you go! If you followed all of my suggestions above, you will save yourself up to $1,065 when setting up your Corporation!!!
Now, For the Video on How to Start and Setup a Corporation (INC) On-Line in Less Than 6 Minutes
Really good advice on getting started with a business. I’ve used them before for online legal documents. Its good to keep things on a low budget or basic level of services, because there’s no need to overspend on an un-established business.
EL recently posted…Being a Rich Imposter
EL,
Exactly – we spent a whole lot on my first startup business. Got the seal and all that junk. Was a complete waste of money! Go cheap I say.
It’s crazy how technology has revolutionized so many areas of our lives. Now you can bypass the lawyers and set up a business in no time flat.
I’ve even bypassed a lawyer when drafting up a lease agreement when renting out my house. I was nervous at first, but realized that the forms I found online were originally drafted by lawyers!
Jon @ Money Smart Guides recently posted…Worst Financial Advice Ever
Jon,
Exactly – folks in these types of professions try to “mystify” the complexities of these types of documents. But for 95% of us, we can just use a cookie-cutter type document if we don’t require anything special.